Not only rice, the prices of many agricultural products for export in Vietnam increased sharply, setting a new record.

High prices support export turnover

A report by the Ministry of Agriculture and Rural Development showed that in July, Vietnam's export turnover reached about US$4.62 billion, up 5.3% over the same period last year.

Agricultural products reached 2.32 billion USD, up 27%; livestock production reached 45 million USD, up 35.6%; seafood reached 800 million USD, down 15%; forest products reached 1.24 billion USD, down 11%; production input reached 210 million USD, up 12.7%.

Also read: Rice exports soar 49% in May

By the end of July 2023, the total export turnover of the agricultural sector was estimated at 29.13 billion USD, down 9.1% - a slight decrease compared to previous months. Specifically, the export value of aquatic products reached US$4.95 billion, down 25.4%; forest products, 7.79 billion USD, down 25.5%; production input reached 1.13 billion USD, down 25.1%.

However, the group of agricultural products for export earned 14.99 billion USD, up 13.2% over the same period last year. That is thanks to the export value of vegetables and fruits reaching 3.23 billion USD, a sharp increase of 68.1%; rice reached 2.58 billion USD, up 29.6%; cashew nuts 1.95 billion USD, up 9.8%; coffee 2.76 billion USD, up 6%. In addition, livestock products also reached 276 million USD, up 27.4%.
Notably, the prices of many export agricultural products increased sharply, setting a historical record.

For example, the average export price of Vietnam's coffee in July 2023 recorded a record high of 2,828 USD/ton, an increase of 5.4% compared to June 2023 and an increase of 23.4% compared to July. 2022. Generally, in the first 7 months of 2023, the average export price of coffee reached 2,418 USD/ton, up 7.3% over the same period last year.

Meanwhile, Vietnam's rice export price is at a historic record high when India and some countries ban the export of this item.

Read more: Indonesia emerges as third largest buyer of Vietnamese rice

Data from the Vietnam Food Association shows that the price of 5% broken rice for export on August 11 reached a new milestone of 638 USD/ton, 25% rice also jumped to 618 USD/ton. Compared to the time before India banned exports (July 20), rice 5% broken and 25% broken increased by 105 USD/ton, bringing the price of this item to a rare high in history.

In just 20 days, Vietnam's 5% and 25% broken rice export prices increased by 19.7% and 20.5%, respectively.

Not only rice but the price of many other items also increased

There are no record high prices like rice and coffee, but prices of pepper and cassava are on a strong upward trend, and the average export price of Vietnam's pepper reached 3,731 USD/ton. This is the highest price so far this year. The average export price of cassava and cassava products was 494.9 USD/ton, up 6.9% compared to June 2023 and 9.2% compared to July 2022.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien assessed that, after a sharp decline in the first months of the year, by the beginning of the third quarter of 2023, the export of agricultural products has had a good chance. The big market had many positive signals when demand increased, leading to an increase in export orders.
Particularly for rice, the Deputy Minister said restricting exports is an opportunity for Vietnamese rice in many countries, such as India, Russia, and UAE.

Rice industry experts said that the price of rice for export could rise to the threshold of $800/ton, even repeating the history of 2008 when this item reached the price threshold of $1,000/ton. Because, the global rice supply is tense, some countries have banned exports to protect national food security, while major rice producing areas in Asia are strongly affected by El Nino, causing production to fall. This item is heavily discounted.

Recently, a report by Fitch Ratings warned that heavy rains in the Northeast, China - the world's largest rice producer - will reduce rice production and potentially put upward pressure on prices of this commodity globally. 

Similarly, the coffee industry is also at risk of falling into a crisis like rice. Cause, too much rain dragged coffee production in Indonesia - the world's fourth-largest coffee-growing country - to the lowest level in the past decade, pushing global coffee prices to all-time highs.

Worryingly, El Nino-induced dry weather could intensify in late 2023 and early next year. This is when coffee is flowering and fruiting, so Indonesia's coffee production is expected to decline sharply.

According to a report by the International Coffee Organization (ICO), there is expected to be a global shortage of 7.26 million bags of coffee in 2023/2024.

The Import-Export Department (Ministry of Industry and Trade) forecasts that the world price of robusta coffee will continue to increase in the coming time. Short supply and low inventories on both exchanges will support the price of this commodity.

In Vietnam, coffee production in the 2021-2022 crop year reaches over 1.8 million tons, ranking second in the world, after Brazil and the country with the largest robusta coffee production globally.

Inflation spread globally, and people tightened spending, forced to look for the same products but at more affordable prices. Vietnam's robusta coffee benefits, export prices have increased sharply over time. This is also an opportunity to boost the export of this item.

Read more: Vietnam’s exports grow 4.3% in May